Indices dip on profit booking; Nifty settles below 21,700

The stock market saw a dip today due to profit-booking at higher levels and concerns over Red Sea disruptions in the global supply chain and freight costs. The Nifty closed below the 21,700 level after hitting the day`s high of 21,755.60 in early trade. Pharma, healthcare and energy stocks were in demand. On the other hand, autos, private banks IT stocks declined. The potential for euphoria in certain segments of the market has tempered exuberant investor behavior ahead of the upcoming Q3 earnings season. IT giants TCS and Infosys are set to kick off the Q3 earnings season on 11 January 2024.

The barometer index, the S&P BSE Sensex shed 379.46 points or 0.53% to 71,892.48. The Nifty 50 index declined 76.10 points or 0.35% to 21,665.80.

Larsen & Toubro (down 2.36%), ICICI Bank (down 1.91%) and Infosys (down 1.05%) were major drags.

In the broader, the S&P BSE Mid-Cap index shed 0.08% and the S&P BSE Small-Cap index down 0.03%.

The market breadth was almost even. On the BSE, 1,906 shares rose and 1,904 shares fell. A total of 119 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 0.68% to 14.58.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.18% to 7.209 as compared with previous close 7.196.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3250, compared with its close of 83.2150 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement advanced 0.39% to Rs 63,570.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.30% to 101.63.

The United States 10-year bond yield advanced 2.22% to 3.940.

In the commodities market, Brent crude for March 2024 settlement added $1.76 or 2.28% to $78.80 a barrel.

Global Markets:

The Dow Jones index futures were down 177 points, indicating a weak opening in the US stocks today.

European shares declined while most Asian stocks settled lower on the first trading day of the year. Japan was assessing the damage from a powerful earthquake that struck its central region on New Year�s Day. Markets in the region are closed until January 4.

A private survey showed manufacturing activity in China expanded in December. The Caixin manufacturing purchasing managers� index came in at 50.8 in December, according to a release Tuesday, following a 50.7 reading for November. China�s official PMI fell to 49 in December from 49.4 the previous month, the country�s National Bureau of Statistics said in a Sunday release.

U.S. markets were closed on Monday for New Year�s Day.

Stocks in Spotlight:

VST Industries hit an upper limit of 20% to settle at Rs 4065.30, following multiple block deals in intraday trade today, 2 January 2024.

On the BSE, 5.10 lakh shares of the company traded in the counter as against an average trading volume 2,009 shares in the past three months. On the NSE, 1.03 lakh shares of the company traded in the counter as against an average trading volume 5,969 shares in the past three months.

Vodafone Idea slumped 5.65% to Rs 16.03 following the company`s dismissal of news reports regarding a potential collaboration with Elon Musk`s Starlink.

JTL Industries (JTL) rallied 4.02% after the firm reported a quarterly sales volume of 1,00,905 MT in Q3 FY24, marking an impressive growth of 76.05% compared to the volume of 57,317 recorded in Q3 FY23.

NMDC gained 2.88% after the state-owned iron ore miner increased prices of lump ore and fines, effective from 2 January 2024.

UltraTech Cement slipped 2.46%. The cement major said that its consolidated cement sales volume increased 6%YoY to 27.32 million tons (MT) in Q3 FY24.

South Indian Bank rose 0.82%. The bank�s gross advances jumped 10.83% to Rs 77,713 crore as of 31 December 2023 as against Rs 70,117 crore as of 31 December 2022.

Life Insurance Corporation of India (LIC) fell 2.41% after the company received GST demand of Rs 806.29 crore, including, GST, penalty and interest from Deputy Commissioner of State Tax, Mumbai, Maharashtra.

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